Your Student Loan Debt Could be Cancelled This Month; Here's What You Need to Do Before April 30!

By Madz Dizon

Apr 29 2024, 04:42 AM EDT

Californians Have Until June 30 to Qualify for Faster Student Loan Forgiveness, Lower Payments — Student loan borrowers and advocates gather for the People's Rally To Cancel Student Debt During The Supreme Court Hearings On Student Debt Relief on February 28, 2023 in Washington, DC. Jemal Countess/Getty Images for People's Rally to Cancel Student Debt

The deadline for student loan cancellation is fast approaching, making an important chance for borrowers.

Federal student loan borrowers may be eligible for a complete cancellation of their debt or credit towards cancellation through a one-time payment-count adjustment offered by the US Department of Education. However, to qualify, it may be necessary for you to consolidate your loans.

Student Loan Debt Should be Consolidated Before April 30

Consolidate your federal student loans into one new federal loan before midnight on April 30. Consolidating your loans can be an advantageous way to convert certain types of loans into ones that offer more debt relief benefits. In addition, it can consolidate multiple loans with varying payoff schedules into a single monthly payment with a unified due date, according to CNET.

The Biden administration has announced the cancellation of federal student debt for a significant number of undergraduate and graduate students, while also offering some relief to many others. According to NBC News, over 30 million Americans will benefit from this.

Over four million borrowers are set to have their entire student debt cancelled, while another 10 million will qualify for a minimum of $5,000 in debt relief. Additionally, accrued interest will be wiped out for 23 million borrowers.

The US Department of Education plans to implement a one-time adjustment during the summer. To maximize your credit towards loan cancellation, it is necessary to consolidate any of the federally managed loans mentioned in the list:

Commercially held Federal Education Loans or FFELs.
Parent PLUS loans
Perkins loans
Health Education Assistance Loan Program or HEAL loans

Student Loan Cancellation Assistance, Hotline

If you're uncertain about the type of loan you possess, you can access your account on StudentAid.gov or reach out to the US Department of Education's Federal Student Aid Information Center at 1-800-433-3243.

This summer, your new Direct Consolidation Loan will be eligible for a one-time adjustment.

Visit StudentAid.gov/loan-consolidation to select the loans you wish to consolidate and calculate a monthly repayment plan for your new loan. Assistance is available at the Federal Student Aid Information Center by calling 1-800-433-3243. There are no charges for applying.

After making at least 25 years or 300 months of repayment towards your Parent PLUS loan managed by the US Department of Education, your loan will be automatically cancelled as part of a one-time adjustment. Otherwise, it would be advisable to consider consolidating the loan.